Prompt Payment

FEDERAL PROMPT PAYMENT

As someone involved in the construction industry, you know that payment delays have serious and negative effects on your business, and the efficiency of Canada’s construction sector. The Mechanical Contractors Association of Canada (MCAC) has been working hard with our partners in the National Trade Contractors Coalition of Canada (NTCCC) to fight payment delays for years and incredible progress was made in 2016-now we need your help. Bill S-224, the Canada Prompt Payment Act is at a crucial stage of deliberation in the Canadian Senate. MCAC is asking our members and your colleagues in the construction industry to use NTCCC’s letter tool to send a message of support to Senators in your home province. Please click on the following link www.promptpayment.ca to send your letter and let government know how important it is to solve the issue of delayed payments in Canada. Thank you in advance for your prompt action.
Del Pawliuk, President, MCA Canada


Étant impliqué dans l’industrie de la construction, vous savez que les retards de paiement ont des effets graves et négatifs sur votre entreprise de même que sur l’efficacité du secteur de la construction au Canada. Association Canadienne des Entrepreneurs en  Mécanique (ACEM) a travaillé dur avec ses partenaires de la National Trade Contractors Coalition of Canada (NTCCC) pour lutter contre les retards de paiement pendant des années. Nous avons fait des progrès incroyables en 2016, mais nous avons maintenant besoin de votre aide. Le projet de loi S-224, ou Loi sur les paiements effectués dans le cadre des contrats de construction est à une étape cruciale au Sénat canadien.ACEM demande à ses membres et à leurs collègues de l’industrie de la construction d’utiliser le modèle de lettre de la NTCCC pour envoyer un message de soutien aux sénateurs de leur province. Cliquez sur le lien www.promptpayment.ca/fr pour envoyer votre lettre et faire savoir au gouvernement combien il est important de résoudre la question des retards de paiement au Canada. Nous vous remercions d’avance de votre action rapide.
Del Pawliuk, President, MCA Canada


Senate Passes Bill S-224 Prompt Payment Act – Heads to House.
May 5th, 2017 (OTTAWA) – Canada’s construction community is applauding the Senate of Canada for passing Bill S-224, The Canada Prompt Payment Act, at third reading. After debate in the chamber and careful consideration at the Senate Standing Committee on Banking, Trade and Commerce the bill was passed. It now heads to the House of Commons for Consideration. Click here to read the Press Release.


An open letter to Canadian Construction Industry.
March 24, 2017 – Bill S-224, The Canada Prompt Payment Act, was introduced in the Senate over 11 months ago. The Canadian Construction Association (CCA) has taken no public position on the legislation. It is clear to Canada’s trade contractors and suppliers that, while a piece of legislation has been tabled that would solve the issue of payment delays with the federal government, it is irresponsible for CCA to stay on the sidelines. Continuing to make progress toward changes that have no force and effect is the definition of futility…. Read more…


Senate Review – Prompt Payment Legislation, Bill S-224  has passed 1st & 2nd reading in the Senate and is now before the Senate Committee on Banking, Trade and Commerce. Hearings were held on February 2nd, 8th & 9th, 2017 featuring MCA Canada, Senator Plett and numerous industry stakeholders and representatives of the federal government. The following are links to the Senate Committee hearings:
February 2-  Click Here (Senator Plett, CIPH & CBTU)
February 8- Click Here (MCAC President Del Pawliuk, NTCCC, & CMMTQ)
February 9- Click Here (Parliamentary Secretary Steven MacKinnon)

MCA Canada is calling on all government parties to commit to supporting Bill S – 244, otherwise known as the Prompt Payment Bill which was introduced into the Senate on April 13, 2016. The Bill requires all federal contracts for construction projects to include a prompt payment clause. This would require federal government owners and contractors to make payments on-time for work that has been completed and that is not in dispute. Without costing the government anything extra, this would be a positive stimulus to the construction industry and would have the positive, long-term effect of inviting more competitive bids and more affordable projects overall.

Other countries like the United Kingdom, Ireland, Australia, New Zealand and the United States (including 49 of 50 states) have eliminated delay issues by implementing prompt payment legislation.  Canada has not! MCA Canada  strongly supports the need to eliminate payment delays for completed work and is diligently working with all levels of government to initiate protocols to ensure contractors get paid for the work the have successfully completed.

Bill S-224 – The Prompt Payment Bill – click here to view or download the Bill
Click here to download the NTCCC Position Paper


Delayed payments are a harmful practice in Canada’s construction industry. They are a significant problem for small businesses, their employees and families, and taxpayers. This issue has led to layoffs, bankruptcies, higher construction costs and fewer competitive bids in the construction sector, which has driven up prices for consumers, governments, and taxpayers.